State guide

Buying or Selling a Home in Pennsylvania: What You Need to Know

Buying or selling a home in Pennsylvania means dealing with state-specific rules from the PA Real Estate Commission plus federal practice changes that took effect in 2024.

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TL;DR

Buying or selling a home in Pennsylvania means dealing with state-specific rules from the PA Real Estate Commission plus federal practice changes that took effect in 2024. Sellers must complete a detailed property disclosure, buyers must sign a written agent representation agreement before touring homes, and every commission rate is negotiable. Closings are handled by title companies in most of the state, transfer taxes run 2% outside Philadelphia and 4.278% inside the city, and Pennsylvania has its own quirks like Transaction Licensee representation, coal-mining subsidence notices, and one of the highest radon-risk profiles in the country.

9 things every Pennsylvania buyer or seller should know

  • In Pennsylvania, the Consumer Notice must be handed to you at the first in-person meeting with a real estate agent — before you talk about price, motivation, or property details. The notice explains the five ways an agent can represent you in PA: seller's agent, buyer's agent, dual agent, designated agent, and Transaction Licensee. Skipping this step is a violation of state license rules.

  • Pennsylvania sellers of homes with one to four units must complete the Seller's Property Disclosure Statement under the Real Estate Seller Disclosure Law before signing an agreement of sale. The form covers roof, basement, foundation, HVAC, plumbing, water, sewage, flooding history, drainage, radon, lead paint, and storage tanks. Sellers must answer based on actual knowledge — 'unknown' is allowed only when the seller genuinely does not know, not as a blanket shield.

  • If you don't live in Pennsylvania and you sell a PA property, the title company withholds 3.07% of your net gain at closing and sends it to the PA Department of Revenue. You can apply for a withholding exemption certificate before closing if you qualify; otherwise the amount is reconciled when you file your PA nonresident tax return. The 3.07% rate is Pennsylvania's flat personal income tax rate.

  • Before a buyer's agent tours homes with you in Pennsylvania, they must sign a written buyer representation agreement that states exactly how much they'll be paid. This rule comes from both PA license law and the NAR settlement practice changes that took effect August 17, 2024. The amount and length of the agreement are fully negotiable — there is no 'standard' compensation rate.

  • Parts of western and central Pennsylvania sit above old or active bituminous coal mines, and state law requires sellers to give buyers a Coal Mining Subsidence notice when the coal rights have been or may be severed from the surface. The notice warns that the ground above old mines can sink, and that the surface owner's recourse depends on who owns the coal rights underneath. Counties most affected include Allegheny, Cambria, Fayette, Greene, Indiana, and Westmoreland.

  • Pennsylvania has about twice the national average radon risk because of the limestone, granite, and uranium-bearing rock that runs under much of the state. Sellers must disclose any known radon test results and any mitigation work on the property disclosure statement. The EPA action level is 4 picocuries per liter — anything at or above that usually means installing a mitigation system.

  • Pennsylvania's realty transfer tax is 2% of the sale price outside Philadelphia — 1% to the state and 1% to the local taxing body — and most contracts split it 50/50 between buyer and seller. Philadelphia is the major exception: the combined city, school district, and state rate totals 4.278%, so a $500,000 Philadelphia sale carries roughly $21,390 in transfer tax. Who pays is negotiable in the contract.

  • There is no 'standard' real estate commission rate in Pennsylvania — every rate is negotiable between you and your agent. Federal antitrust law and the 2024 NAR settlement specifically forbid agents from telling consumers that a fixed rate is the norm, and no MLS or trade association can set one. If an agent says 'everyone charges 6%,' that statement itself is a red flag.

  • Pennsylvania does not require an attorney at closing. In southeastern PA and the Philadelphia metro, title companies handle almost every closing; in western PA around Pittsburgh, settlement companies and occasionally attorneys handle them. You can hire an attorney to review documents or attend closing in any region — it's optional but a common safeguard for complex deals.

The guides

Common questions

Do I need to hire an attorney to close on a home in Pennsylvania?
No. Pennsylvania does not require an attorney at closing, and most closings in the Philadelphia metro and southeastern PA are handled entirely by title companies. In western PA, settlement companies and occasionally attorneys are used. Hiring an attorney to review your contract or attend closing is always an option if you want extra protection.
How much is the real estate transfer tax in Pennsylvania, and who pays it?
Outside Philadelphia, the combined state and local transfer tax is 2% of the sale price — 1% to the state and 1% to the local jurisdiction. Philadelphia adds higher city and school district rates, bringing the total there to 4.278%. The contract decides who pays; most PA deals split it 50/50 between buyer and seller, but that's negotiable.
What does a Pennsylvania home seller have to disclose?
Under the Real Estate Seller Disclosure Law, sellers of 1-to-4-unit residential homes in PA must complete a written Seller's Property Disclosure Statement before signing a sales contract. The form covers the roof, basement, foundation, HVAC, plumbing, water, sewage, flooding, drainage, radon, lead paint, storage tanks, and other known issues. Saying 'unknown' is allowed only when you truly don't know — guessing or hiding a problem can expose you to liability after closing.
I live out of state but I'm selling a Pennsylvania property — will tax be withheld at closing?
Yes. Pennsylvania requires the settlement agent to withhold 3.07% — the state's flat income tax rate — from a nonresident seller's net gain at closing and remit it to the PA Department of Revenue. If your gain is hard to calculate at closing, the title company may use an estimate, or you can apply to the Department of Revenue for a withholding exemption certificate before closing. You true up the amount when you file your PA nonresident return.
Do I have to sign an agreement with a buyer's agent before they show me homes in Pennsylvania?
Yes. Pennsylvania license law has long required a written buyer agency agreement, and the August 17, 2024 NAR settlement now also requires the agreement to state exactly how the agent will be paid before they tour homes with you. The amount and length of the agreement are negotiable, so read it carefully before you sign. The agreement is binding only for the period and properties it spells out.
Should I test for radon when buying a Pennsylvania home?
Most experts say yes. Pennsylvania has roughly twice the national average radon risk because of the rock formations under the state, and the EPA action level is 4 picocuries per liter. Testing is not legally required as a condition of sale, but the seller must disclose any known prior test results and any mitigation work. A fresh test as part of your inspection is one of the cheapest ways to catch a serious health risk before you close.
Are real estate commissions fixed in Pennsylvania?
No. Every commission rate in PA is negotiable between you and your agent — no rate is set by the state, the PA Real Estate Commission, the Pennsylvania Association of Realtors, or any MLS. Federal antitrust law and the 2024 NAR settlement specifically forbid agents from claiming a fixed rate is normal. If an agent insists 'everyone charges X%,' treat it as a sales pitch, not a fact.
What is a Transaction Licensee in Pennsylvania, and how is it different from a regular agent?
Pennsylvania is unusual in offering a Transaction Licensee role — someone who helps complete the deal without representing either side as a fiduciary. A Transaction Licensee still has to be honest, present all offers promptly, and disclose known material defects, but they cannot advise you on price strategy or advocate for your side against the other party. The Consumer Notice you receive at the first business meeting explains this option alongside the seller's agent, buyer's agent, dual agent, and designated agent roles.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.